Vietnamese ministry offers solutions to tackle high sea freight costs

The Vietnam Logistics Business Association, the Vietnam Ship-owner’s Association, the Vietnam Shipper’s Council and the Vietnam Ship Agents, Brokers and Maritime Services Providers Association received the official order.

The ministry called for better coordination among associations and companies to improve capacity; jointly developing production, business and transportation plans and plans for the import and export of goods as a basis for concluding long-term contracts with shipping companies; minimizing the impact of freight rates and surcharges, a domestic media reported.

As ocean freight rates continue to rise and congestion at some Asian ports and a shortage of empty containers have hit trade, Vietnam’s Ministry of Industry and Trade has asked associations and companies to coordinate the implementation of key solutions to promote imports and exports. Importers and exporters may consider alternative routes to and from Europe, it was suggested.

Importers and exporters may consider alternative routes to and from Europe, such as a hybrid transport route, the ministry suggested.

Import-export companies have been asked to cooperate with customs authorities and port operators to expedite the handling of overdue goods at ports. This will help improve the flow of goods and enhance the capacity for handling goods at ports.

Industry associations should also work with the Vietnam Chamber of Commerce and Industry (VCCI) to strengthen communication and improve the capacity of SMEs in negotiating and signing foreign trade and insurance contracts. This will help protect businesses from risks and losses, especially in sea freight that travels through high-risk routes.

The ministry has also asked associations and companies to draw up contingency plans to minimize risks and losses.

Fibre2Fashion News Desk (DS)